Which of the following are acceptable bases for absorbing production overheads? (i) Direct labour hours(ii) Machine hours(iii) As a percentage of the prime cost(iv) Per unit
A、Methods (i) and (ii) only
B、Methods (iii) and (iv) only
C、Methods (i), (ii), (iii) and (iv)
D、Methods (i), (ii) or (iii) only
A、Methods (i) and (ii) only
B、Methods (iii) and (iv) only
C、Methods (i), (ii), (iii) and (iv)
D、Methods (i), (ii) or (iii) only
【参考答案及解析】
All of the methods are acceptable bases for absorbing production overheads. However, the percentage of prime cost has serious limitations and the rate per unit can only be used if all cost units are identical.
All of the methods are acceptable bases for absorbing production overheads. However, the percentage of prime cost has serious limitations and the rate per unit can only be used if all cost units are identical.